Netflix relies on a constant flow of new content to stay ahead of other streaming services and short-form video platforms. Now, YouTube might make that content harder and more expensive to get.
A recent Bloomberg report says YouTube is offering creators big financial rewards to post their content only on its platform for a certain time. This move seems designed to keep creators from working with Netflix. The report also mentions that YouTube might fund shows directly or share money from major brand deals. Google and Netflix have not responded to the report.
Wolfe Research explained how this situation could put pressure on Netflix’s stock. Alphabet made $40.4 billion from YouTube ads in 2025, and Wolfe thinks that kind of money could help YouTube keep creators from leaving. This might force Netflix to spend much more to attract creators, which could hurt its profit margins. Investors want to see Netflix keep improving its profits, but Wolfe warns that rising programming costs, especially since 2026, could slow down that progress.
Netflix’s stock has already faced challenges this year as investors worry about how the company will keep growing, especially with more competition from other streamers like Disney+ and short-form apps like TikTok. YouTube is still Netflix’s biggest rival for viewers, offering lots of free content. Nielsen reports that in June, YouTube made up 13.8% of all streaming viewership time, while Netflix had 7.9%.
Investors want to see proof that Netflix has a plan to keep growing as competition heats up. Netflix has been adding different types of content to keep current subscribers and bring in new ones. This includes more live sports and deals with YouTube creators. The focus on creators seems to be working—Netflix’s latest engagement report showed that the children’s show Ms. Rachel was one of its most-watched programs in the first half of the year.
However, growing in these areas is expensive. Wolfe points out that concerns about Netflix aren’t just about sales after 2027. Rising programming costs are also a big issue as Netflix tries to improve its main entertainment and movies while also moving into live events, creator content, video podcasts, short videos, gaming, and possibly more in the future.
If YouTube’s plan leads to a tougher bidding war for content, Netflix could face even higher programming costs and lower profit margins, which might hurt its stock price.
